NH - I read the report and felt it to be overly optimistic on projected sales. The global Ag economy is in terrible shape. Ag equipment dealers are hurting, some farmers are in trouble, none of them are talking new equipment. The prices appear to have bottomed, but there's no sign of improvement. World currency devaluations, tighter bank credit policies, etc. With another large crop in 1999, the situation could get worse.
I listen to Ag news every morning as I have some farmland I lease out on percentage. Last year we had the best yield we've ever had with poor profits - but at least we had profits. Low prices, high fertilizer, & chemical costs, new EPA restrictions, etc. Last week I talked with a local Ag equipment dealer. His shop is busy but he's selling no equipment - particularly new. The NH dealer usually has a good turnover, but the same machines have been sitting on his lot since last Spring (I drive by it every day)
Deere & Case are relying heavily on their construction equipment divisions to offset poor Ag sales. They have been and hope to benefit from the strong home and business construction that now seems to be weakening. NH has little to no marketing in this area.
FWIW,
Ron |
